BEGIN SUMMARY: AID- INDIA CONSORTIUM MEETING HELD IN PARIS, JUNE
14-15 WAS SUBJECT OF WIDESPREAD INDIAN PRESS REPORTING IN THE DAYS
IMMEDIATELY FOLLOWING AND SUBSEQUENTLY IN JUNE 24 DAILIES FOLLOWING
A PRESS BRIEFING ON JUNE 23 BY CHAIRMAN OF THE INDIAN DELEGATION,
M. G. KAUL. STORIES REFLECT GENERAL SATISFACTION WITH OUTCOME OF
CONSORTIUM MEETING AND GENERAL APPRECIATION OF US ROLE ( EVEN IN-
CLUDING LEFT- WING PATRIOT). EDITORIALS URGED GOI TO EMPHASIZE DEBT
RESCHEDULING, EXPORT PROMOTION, PUTTING ITS OWN ECONOMIC HOUSE IN
ORDER AND INITIATING A BROAD- BASED REVIEW OF ECONOMIC RELATIONS
WITH THE US. END SUMMARY.
1. KAUL, IN PRESS BRIEFING ON JUNE 23, SAID THAT ACTUAL COMMITMENTS
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 02 NEW DE 07476 271437 Z
MADE BY DONOR MEMBERS AT CONSORTIUM MEETING CAME TO $1.1 BILLION
FOR IFY 1973/74, AND THAT THIS WAS CLOSE TO IBRD' S RECOMMENDED TAR-
GET OF $1.2 BILLION. ACTUAL DISBURSEMENTS EXPECTED TO BE AROUND $980
MILLION AND AMOUNT OF NET AID TO BE ABOUT $260 MILLION. DIS-
BURSEMENTS INCLUDE $87.6 MILLION IN RECENTLY UNFROZEN US AID.
2. KAUL SAID THAT AID DONORS HAD SHOWN A SYMPATHETIC UNDERSTANDING
OF INDIA' S PROBLEMS AND HAD RECOGNIZED THAT NON- PROJECT ASSISTANCE
WAS A USEFUL WAY OF EASING INDIA' S BALANCE- OF- PAYMENTS STRAINS. SOME
NEWSPAPERS INTERPRETED KAUL' S REMARKS TO MEAN THAT CONSORTIUM MAY
EXTEND SUPPLEMENTARY ASSISTANCE OVER AND ABOVE $1.1 BILLION FIGURE,
ALTHOUGH KAUL IS REPORTED TO HAVE CAUTIONED THAT " NOTHING SPECIFIC
WAS
MENTIONED ON THE SUBJECT" ( ECONOMIC TIMES, JUNE 24). KAUL SAID THAT
FOREIGN EXCHANGE SITUATION WOULD REQUIRE " CAREFUL HANDLING" AND NOTED
THAT DONORS HAD EXPRESSED THE HOPE THAT GOI WOULD IMPROVE INVESTMENT
CLIMATE THROUGH SUCH STEPS AS MORE FLEXIBLE LICENSING POLICIES. THIS
WOULD CONTRIBUTE TO CONDITIONS FOR SUSTAINED RAPID INDUSTRIAL GROWTH.
3. KAUL INDICATED THAT ALL MEMBERS OF THE CONSORTIUM EXCEPT THE
US HAD EITHER MADE COMMITMENTS OR GIVEN INDICATIONS OF THEIR
LIKELY QUANTUM OF AID AT THE MEETING, ALTHOUGH HE DECLINED TO PROVIDE
A COUNTRY- BY- COUNTRY BREAKDOWN. HE SAID THAT IDA WOULD BE COM-
MITING APPROXIMATELY $500 MILLION.
4. KAUL SAID THAT US COMMITMENT OF NEW AID WOULD NOT BE KNOWN
UNTIL THE US CONGRESS HAS COMPLETED HEARINGS ON THE USAID BILL
FO US FY 1974. ONLY ONE PAPER NOTED PARENTHETICALLY THAT THE
US ADMINISTRATION HAD REQUESTED $75 MILLION FOR INDIA IN ITS 1974
AID REQUEST. KAUL REPORTED TO HAVE DESCRIBED US ATTITUDE AT MEET-
ING AS " VERY FRIENDLY" OR AS " FRIENDLY AND SYMPATHETIC" AND TO HAVE
STATED THAT US WOULD TAKE PART IN 1973/74 DEBT RELIEF EXERCISE.
5. JUNE 16 EDITIONS OF ECONOMIC TIMES AND FINANCIAL EXPRESS
CARRIED VIRTUALLY IDENTICAL ARTICLES TO EFFECT THAT US HAD MADE NO
COMMITMENT AT CONSORTIUM MEETING BUT HAD INDICATED IT WAS WILLING
TO DISCUSS AID REQUIREMENTS BILATERALLY. ARTICLES SAID THAT US FEELS
INDIA LOOKS AT AID FROM WASHINGTON AS " INCURSIVE" ( MACDONALD HAD
USED THE WORD " INTRUSIVE" IN PRIVATE CONVERSATIONS IN PARIS) AND, AS
SUCH, THE US IS NOT IN A POSITION TO INITIATE ANY AID COMMITMENT.
ARTICLE CONTINUES THAT " BUT INFORMED SOURCES SAID THE GENERAL AMERI-
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 03 NEW DE 07476 271437 Z
CAN ATTITUDE WAS FRIENDLY IN REGARD TO DEBT RELIEF AND QUITE
FAVORABLE."
6. HINDUSTAN TIMES ARTICLE OF JUNE 19 STATES THAT " THERE IS NO
SURPRISE
HERE ( STORY IS DATELINED NEW DELHI) OVER THE POSITION TAKEN BY THE US
WHICH HAS NOT MADE ANY COMMITMENT, AS THE INDIAN DELEGATION DID NOT
GO TO PARIS WITH ANY EXPECTATION ON THIS SCORE. HOWEVER, IF THE US
HAD PLEDGED ECONOMIC AID, ITS DECLARATION WOULD HAVE BEEN WELCOME.
THE GOVERNMENT' S POLICY OF NOT ASKING FOR US AID REMAINS UNCHANGED."
7. EDITORIAL COMMENT ON CONSORTIUM MEETING. THE STATESMAN OF JUNE
17 NOTED USEFULNESS OF CONSORTIUM ARRANGMENT IN SECURING AID FOR
INDIA, STATING THAT IT IS UNLIKELY THAT COUNTRY DONORS WOULD PROVIDE
AS
MUCH ASSISTANCE TO INDIA ON A STRICTLY BILATERAL BASIS AS THEY DO
THROUGH
THE CONSORTIUM. EDITORIAL NOTES THIS IS PARTICULARLY TRUE OF JAPAN.
RE DEBT RESCHEDULING, EDITORIAL NOTES THAT " THE AMERICANS, LIKE
MOST OTHER DONORS, MAY NOT HAVE PARTICIPATED IN THE DEBT RESCHEDUL-
ING EXERCISE BUT FOR WORLD BANK PRESSURE." EDITORIAL CONTINUES " WHAT
IS DISTRUBING IS THAT THERE IS NO MENTION IN THE PRESS REPORTS FROM
PARIS
OF ANY CONSIDERATION OF A FURTHER AND LONG TERM DEBT RELIEF EXERCISE.
"
EDITORIAL CONCLUDES, " RATHER THAN SEEKING HIGHER AID LEVELS, INDIA
MUST ASK FOR A LARGER DEBT RESCHEDULING EXERCISE THAT COVERS AT LEAST
HALF THE FOREIGN EXCHANGE DEBT- SERVICING PAYMENTS." ( THIS IMPLIES
BEBT RESCHEDULING OF $350 - $375 MILLION ANNUALLY.)
8. INDIAN EXPRESS EDITORIAL OF JUNE 18 ALSO NOTED IMPORTANCE OF DEBT
RESCHEDULING. EDOTORIAL STATES IN PART " THE HELPFUL PART OF THE PRO-
CEEDINGS IS THE COMPARATIVELY FIRMER CONSENSUS OF THE EXTENT OF RE-
SCHEDULING OF DEBT REPAYMENTS." AFTER MENTIONING RECENT AGRICULTURAL
SETBACKS IN INDIA, EDITORIAL INDIRECTLY RAISED THE ISSUE OF CON-
CESSIONAL
FOOD AID FROM THE US. " THIS ( IMPACT OF FOOD SHORTAGE ON INDIAN
BALANCE- OF- PAYMENTS) IS OF DIRECT RELEVANCE TO THE PROSPECTS OF AID
FLOW FROM THE US WHICH IS THE MAIN SOURCE FOR FOODGRAIN IMPORTS
BY INDIA." EDITORIAL SAID THAT REPORTED US ATTITUDE THAT INDIA
INITIATE DISCUSSIONS ON A RESUMPTION OF US AID " RAISES SOME
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 04 NEW DE 07476 271437 Z
SENSITIVE PROBLEMS" WHICH EDITORIAL DID NOT ELABORATE UPON.
9. EDITORIAL IN JUNE 18 FINANCIAL EXPRESS NOTES THAT EXPECTED NET
AID OF $260 MILLION IN IFY 73/74 FALLS FAR SHORT OF MOF BUDGET
ESTIMATE OF RS. 400 CRORES ($535 MILLION) IN NET AID DURING CURRENT
IFY. EDITORIAL NOTES THAT SCARCITY OF FOREIGN EXCHANGE WILL BE A
MAJOR CONSTRAINT ON INDIA' S DEVELOPMENT REGARDLESS OF THE AMOUNT
OF AID RECEIVED, AND THAT THIS CAN BE OVERCOME ONLY IF INDIA
GENERATES
SUFFICIENT EXPORT SURPLUSES. EDITORIAL CONCLUDES THAT INDIA " SHOULD
NOT DEPEND ON THE MAGNANIMITY OF OUR CREDITORS... FOR A SELF-
RESPECTING
COUNTRY THAT PRETENDS TO MOVE TOWARD ZERO AID, THERE IS NO ESCAPE
FROM PUTTING ITS HOUSE IN ORDER."
10. MOTHERLAND ( RIGHT- WING NATIONALIST) EDITORIAL TOOK AN EXAGGERATED
VIEW OF US IMPORTANCE IN CONSORTIUM BY SAYING THAT " UNLESS HE ( INDIAN
AMBASSADOR TO WASHINGTON T. N. KAUL) IS ABLE TO PERSUADE WASHINGTON
TO LOOSEN ITS PURSE STRINGS, NEW DELHI' S UBIQUITOUS BETGING BOWL
WILL BE AS EMPTY AS EVER, THE WORLD BANK NOTWITHSTANDING."
11. ON RELATED MATTER, EDITORIAL IN INDIAN EXPRESS OF JUNE 20 INDI-
CATED REALISM AND CONSTRUCTIVE THRUST ON SUBJECT OF INDO- US
ECONOMIC DIALOGUE. EDITORIAL STATES IN PART:
" INDIA, ON ITS PART, IS ANXIOUS TO EXPLORE THE POSSIBILITY
OF IMPORTING ESSENTIAL SUPPLIES, AMONG THEM FOODGRAINS, FROM THE
USA ON TERMS WHICH WILL NOT BE ONEROUS.....
" WASHIMGTON' S POSITION, WHICH APPEARS TO HAVE BEEN MADE
QUITE EXPLICIT, IS THAT IT IS FOR INDIA TO TAKE THE INITIATIVE. THE
USA,
IT IS SUGGESTED, HAS MADE A POSITIVE GESTURE BY LIFTING THE FREEZE ON
OLD AID COMMITMENTS AND BY A TOKEN PROVISION FOR NEW AID DURING THE
CURRENT YEAR. THE BALL IS THUS PLACED IN INDIA' S COURT.....
" THE ISSUES THAT HAVE ARISEN BETWEEN INDIA AND THE USA
CANNOT BE TACKLED PIECEMEAL IN THE FORM OF SEPARATE COMMERCIAL DEALS.
AN OVERALL VIEW AND APPROACH HAVE TO BE EVOLVED AND A COMPREHENSIVE
DIALOGUE NEEDS TO BE ARRANGED. INDIA SHOULD NOT FEEL SHY OF TAKING
THE INITIATIVE FOR SUCH A DIALOGUE.
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 05 NEW DE 07476 271437 Z
SCHNEIDER
LIMITED OFFICIAL USE
<< END OF DOCUMENT >>

Raw content

PAGE 01 NEW DE 07476 271437 Z
47
ACTION NEA-12
INFO OCT-01 ADP-00 EA-11 EUR-25 AGR-20 AID-20 EB-11 NSC-10
RSC-01 CIEP-02 TRSE-00 SS-15 STR-08 OMB-01 CEA-02
CIAE-00 COME-00 FRB-02 INR-10 NSAE-00 XMB-07 OPIC-12
LAB-06 SIL-01 L-03 H-02 PA-03 PRS-01 USIA-12 IGA-02
RSR-01 /201 W
--------------------- 064754
R 261215 Z JUN 73
FM AMEMBASSY NEW DELHI
TO SECSTATE WASHDC 5193
INFO AMCONSUL BOMBAY
AMCONSUL CALCUTTA
AMCONSUL MADRAS
LIMITED OFFICIAL USE NEW DELHI 7476
DEPT PASS TREASURY
E. O. 11652: N/ A
TAGS: EFIN, IN
SUBJECT: AID- INDIA CONSORTIUM- INDIAN PRESS REACTION
BEGIN SUMMARY: AID- INDIA CONSORTIUM MEETING HELD IN PARIS, JUNE
14-15 WAS SUBJECT OF WIDESPREAD INDIAN PRESS REPORTING IN THE DAYS
IMMEDIATELY FOLLOWING AND SUBSEQUENTLY IN JUNE 24 DAILIES FOLLOWING
A PRESS BRIEFING ON JUNE 23 BY CHAIRMAN OF THE INDIAN DELEGATION,
M. G. KAUL. STORIES REFLECT GENERAL SATISFACTION WITH OUTCOME OF
CONSORTIUM MEETING AND GENERAL APPRECIATION OF US ROLE ( EVEN IN-
CLUDING LEFT- WING PATRIOT). EDITORIALS URGED GOI TO EMPHASIZE DEBT
RESCHEDULING, EXPORT PROMOTION, PUTTING ITS OWN ECONOMIC HOUSE IN
ORDER AND INITIATING A BROAD- BASED REVIEW OF ECONOMIC RELATIONS
WITH THE US. END SUMMARY.
1. KAUL, IN PRESS BRIEFING ON JUNE 23, SAID THAT ACTUAL COMMITMENTS
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 02 NEW DE 07476 271437 Z
MADE BY DONOR MEMBERS AT CONSORTIUM MEETING CAME TO $1.1 BILLION
FOR IFY 1973/74, AND THAT THIS WAS CLOSE TO IBRD' S RECOMMENDED TAR-
GET OF $1.2 BILLION. ACTUAL DISBURSEMENTS EXPECTED TO BE AROUND $980
MILLION AND AMOUNT OF NET AID TO BE ABOUT $260 MILLION. DIS-
BURSEMENTS INCLUDE $87.6 MILLION IN RECENTLY UNFROZEN US AID.
2. KAUL SAID THAT AID DONORS HAD SHOWN A SYMPATHETIC UNDERSTANDING
OF INDIA' S PROBLEMS AND HAD RECOGNIZED THAT NON- PROJECT ASSISTANCE
WAS A USEFUL WAY OF EASING INDIA' S BALANCE- OF- PAYMENTS STRAINS. SOME
NEWSPAPERS INTERPRETED KAUL' S REMARKS TO MEAN THAT CONSORTIUM MAY
EXTEND SUPPLEMENTARY ASSISTANCE OVER AND ABOVE $1.1 BILLION FIGURE,
ALTHOUGH KAUL IS REPORTED TO HAVE CAUTIONED THAT " NOTHING SPECIFIC
WAS
MENTIONED ON THE SUBJECT" ( ECONOMIC TIMES, JUNE 24). KAUL SAID THAT
FOREIGN EXCHANGE SITUATION WOULD REQUIRE " CAREFUL HANDLING" AND NOTED
THAT DONORS HAD EXPRESSED THE HOPE THAT GOI WOULD IMPROVE INVESTMENT
CLIMATE THROUGH SUCH STEPS AS MORE FLEXIBLE LICENSING POLICIES. THIS
WOULD CONTRIBUTE TO CONDITIONS FOR SUSTAINED RAPID INDUSTRIAL GROWTH.
3. KAUL INDICATED THAT ALL MEMBERS OF THE CONSORTIUM EXCEPT THE
US HAD EITHER MADE COMMITMENTS OR GIVEN INDICATIONS OF THEIR
LIKELY QUANTUM OF AID AT THE MEETING, ALTHOUGH HE DECLINED TO PROVIDE
A COUNTRY- BY- COUNTRY BREAKDOWN. HE SAID THAT IDA WOULD BE COM-
MITING APPROXIMATELY $500 MILLION.
4. KAUL SAID THAT US COMMITMENT OF NEW AID WOULD NOT BE KNOWN
UNTIL THE US CONGRESS HAS COMPLETED HEARINGS ON THE USAID BILL
FO US FY 1974. ONLY ONE PAPER NOTED PARENTHETICALLY THAT THE
US ADMINISTRATION HAD REQUESTED $75 MILLION FOR INDIA IN ITS 1974
AID REQUEST. KAUL REPORTED TO HAVE DESCRIBED US ATTITUDE AT MEET-
ING AS " VERY FRIENDLY" OR AS " FRIENDLY AND SYMPATHETIC" AND TO HAVE
STATED THAT US WOULD TAKE PART IN 1973/74 DEBT RELIEF EXERCISE.
5. JUNE 16 EDITIONS OF ECONOMIC TIMES AND FINANCIAL EXPRESS
CARRIED VIRTUALLY IDENTICAL ARTICLES TO EFFECT THAT US HAD MADE NO
COMMITMENT AT CONSORTIUM MEETING BUT HAD INDICATED IT WAS WILLING
TO DISCUSS AID REQUIREMENTS BILATERALLY. ARTICLES SAID THAT US FEELS
INDIA LOOKS AT AID FROM WASHINGTON AS " INCURSIVE" ( MACDONALD HAD
USED THE WORD " INTRUSIVE" IN PRIVATE CONVERSATIONS IN PARIS) AND, AS
SUCH, THE US IS NOT IN A POSITION TO INITIATE ANY AID COMMITMENT.
ARTICLE CONTINUES THAT " BUT INFORMED SOURCES SAID THE GENERAL AMERI-
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 03 NEW DE 07476 271437 Z
CAN ATTITUDE WAS FRIENDLY IN REGARD TO DEBT RELIEF AND QUITE
FAVORABLE."
6. HINDUSTAN TIMES ARTICLE OF JUNE 19 STATES THAT " THERE IS NO
SURPRISE
HERE ( STORY IS DATELINED NEW DELHI) OVER THE POSITION TAKEN BY THE US
WHICH HAS NOT MADE ANY COMMITMENT, AS THE INDIAN DELEGATION DID NOT
GO TO PARIS WITH ANY EXPECTATION ON THIS SCORE. HOWEVER, IF THE US
HAD PLEDGED ECONOMIC AID, ITS DECLARATION WOULD HAVE BEEN WELCOME.
THE GOVERNMENT' S POLICY OF NOT ASKING FOR US AID REMAINS UNCHANGED."
7. EDITORIAL COMMENT ON CONSORTIUM MEETING. THE STATESMAN OF JUNE
17 NOTED USEFULNESS OF CONSORTIUM ARRANGMENT IN SECURING AID FOR
INDIA, STATING THAT IT IS UNLIKELY THAT COUNTRY DONORS WOULD PROVIDE
AS
MUCH ASSISTANCE TO INDIA ON A STRICTLY BILATERAL BASIS AS THEY DO
THROUGH
THE CONSORTIUM. EDITORIAL NOTES THIS IS PARTICULARLY TRUE OF JAPAN.
RE DEBT RESCHEDULING, EDITORIAL NOTES THAT " THE AMERICANS, LIKE
MOST OTHER DONORS, MAY NOT HAVE PARTICIPATED IN THE DEBT RESCHEDUL-
ING EXERCISE BUT FOR WORLD BANK PRESSURE." EDITORIAL CONTINUES " WHAT
IS DISTRUBING IS THAT THERE IS NO MENTION IN THE PRESS REPORTS FROM
PARIS
OF ANY CONSIDERATION OF A FURTHER AND LONG TERM DEBT RELIEF EXERCISE.
"
EDITORIAL CONCLUDES, " RATHER THAN SEEKING HIGHER AID LEVELS, INDIA
MUST ASK FOR A LARGER DEBT RESCHEDULING EXERCISE THAT COVERS AT LEAST
HALF THE FOREIGN EXCHANGE DEBT- SERVICING PAYMENTS." ( THIS IMPLIES
BEBT RESCHEDULING OF $350 - $375 MILLION ANNUALLY.)
8. INDIAN EXPRESS EDITORIAL OF JUNE 18 ALSO NOTED IMPORTANCE OF DEBT
RESCHEDULING. EDOTORIAL STATES IN PART " THE HELPFUL PART OF THE PRO-
CEEDINGS IS THE COMPARATIVELY FIRMER CONSENSUS OF THE EXTENT OF RE-
SCHEDULING OF DEBT REPAYMENTS." AFTER MENTIONING RECENT AGRICULTURAL
SETBACKS IN INDIA, EDITORIAL INDIRECTLY RAISED THE ISSUE OF CON-
CESSIONAL
FOOD AID FROM THE US. " THIS ( IMPACT OF FOOD SHORTAGE ON INDIAN
BALANCE- OF- PAYMENTS) IS OF DIRECT RELEVANCE TO THE PROSPECTS OF AID
FLOW FROM THE US WHICH IS THE MAIN SOURCE FOR FOODGRAIN IMPORTS
BY INDIA." EDITORIAL SAID THAT REPORTED US ATTITUDE THAT INDIA
INITIATE DISCUSSIONS ON A RESUMPTION OF US AID " RAISES SOME
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 04 NEW DE 07476 271437 Z
SENSITIVE PROBLEMS" WHICH EDITORIAL DID NOT ELABORATE UPON.
9. EDITORIAL IN JUNE 18 FINANCIAL EXPRESS NOTES THAT EXPECTED NET
AID OF $260 MILLION IN IFY 73/74 FALLS FAR SHORT OF MOF BUDGET
ESTIMATE OF RS. 400 CRORES ($535 MILLION) IN NET AID DURING CURRENT
IFY. EDITORIAL NOTES THAT SCARCITY OF FOREIGN EXCHANGE WILL BE A
MAJOR CONSTRAINT ON INDIA' S DEVELOPMENT REGARDLESS OF THE AMOUNT
OF AID RECEIVED, AND THAT THIS CAN BE OVERCOME ONLY IF INDIA
GENERATES
SUFFICIENT EXPORT SURPLUSES. EDITORIAL CONCLUDES THAT INDIA " SHOULD
NOT DEPEND ON THE MAGNANIMITY OF OUR CREDITORS... FOR A SELF-
RESPECTING
COUNTRY THAT PRETENDS TO MOVE TOWARD ZERO AID, THERE IS NO ESCAPE
FROM PUTTING ITS HOUSE IN ORDER."
10. MOTHERLAND ( RIGHT- WING NATIONALIST) EDITORIAL TOOK AN EXAGGERATED
VIEW OF US IMPORTANCE IN CONSORTIUM BY SAYING THAT " UNLESS HE ( INDIAN
AMBASSADOR TO WASHINGTON T. N. KAUL) IS ABLE TO PERSUADE WASHINGTON
TO LOOSEN ITS PURSE STRINGS, NEW DELHI' S UBIQUITOUS BETGING BOWL
WILL BE AS EMPTY AS EVER, THE WORLD BANK NOTWITHSTANDING."
11. ON RELATED MATTER, EDITORIAL IN INDIAN EXPRESS OF JUNE 20 INDI-
CATED REALISM AND CONSTRUCTIVE THRUST ON SUBJECT OF INDO- US
ECONOMIC DIALOGUE. EDITORIAL STATES IN PART:
" INDIA, ON ITS PART, IS ANXIOUS TO EXPLORE THE POSSIBILITY
OF IMPORTING ESSENTIAL SUPPLIES, AMONG THEM FOODGRAINS, FROM THE
USA ON TERMS WHICH WILL NOT BE ONEROUS.....
" WASHIMGTON' S POSITION, WHICH APPEARS TO HAVE BEEN MADE
QUITE EXPLICIT, IS THAT IT IS FOR INDIA TO TAKE THE INITIATIVE. THE
USA,
IT IS SUGGESTED, HAS MADE A POSITIVE GESTURE BY LIFTING THE FREEZE ON
OLD AID COMMITMENTS AND BY A TOKEN PROVISION FOR NEW AID DURING THE
CURRENT YEAR. THE BALL IS THUS PLACED IN INDIA' S COURT.....
" THE ISSUES THAT HAVE ARISEN BETWEEN INDIA AND THE USA
CANNOT BE TACKLED PIECEMEAL IN THE FORM OF SEPARATE COMMERCIAL DEALS.
AN OVERALL VIEW AND APPROACH HAVE TO BE EVOLVED AND A COMPREHENSIVE
DIALOGUE NEEDS TO BE ARRANGED. INDIA SHOULD NOT FEEL SHY OF TAKING
THE INITIATIVE FOR SUCH A DIALOGUE.
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 05 NEW DE 07476 271437 Z
SCHNEIDER
LIMITED OFFICIAL USE
<< END OF DOCUMENT >>